Financial Crime World

Money Laundering Crimes and Enforcement in Brazil: A Complex Legal Landscape

Brazil’s enforcement of money laundering laws is a complex issue, involving various government entities at both the administrative and judicial levels. In this article, we explore the entities responsible for enforcing money laundering laws in Brazil and the legal framework surrounding this issue.

Administrative Enforcement: The Financial Activities Control Council (COAF)

The Financial Activities Control Council (COAF) plays a crucial role in the administrative sphere of money laundering enforcement. COAF is responsible for receiving and analyzing data related to suspicious financial transactions provided by private entities. The results of COAF’s analysis are reported to the authorities responsible for investigating and prosecuting money laundering crimes.

  • Federal and state prosecution agencies can take on money laundering cases.
  • COAF’s responsibilities include analyzing suspicious transactions.

Judicial Enforcement: Police, Prosecutors, and Courts

Brazilian federal and state police are responsible for investigating money laundering cases and identifying the individuals involved. After the investigative phase, federal and state prosecutors lead prosecution before courts, and judges oversee the relevant criminal cases and apply penalties.

  • Federal and state police initiate investigations.
  • Prosecutors lead prosecution and judges oversee criminal cases.

Specialist Courts on Money Laundering and Financial Crimes

Since the early 2000s, specialist courts on money laundering and financial crimes have been established in Brazil. These courts have played an essential role in handling high-profile cases, such as the Car Wash investigations.

  • Specialist courts handling financial crimes and money laundering cases.
  • Lower federal courts oversee Car Wash investigations.

Legislative Framework: Brazilian Congress and Various Federal Authorities

Brazil, as a federal republic, grants the Brazilian Congress the power to legislate on criminal and procedural law, including money laundering. Different federal authorities are responsible for regulating Law 9,613/98 in various sectors.

  • Brazilian Congress has legislative power over criminal and procedural law.
  • Various federal authorities regulate Law 9,613/98.

Jurisdiction: Federal vs. State Authorities

Jurisdiction for money laundering cases is determined based on the criteria set forth by Law 9,613/98, the Federal Constitution, and the Criminal Procedure Code. The law states that certain money laundering cases fall under federal jurisdiction, while others are investigated and prosecuted by local state authorities.

  • Jurisdiction for money laundering cases is determined based on certain criteria.
  • Federal vs. state authorities’ jurisdiction depending on case facts.

Corporate Criminal Liability and Discussion

Discussions have arisen regarding extending corporate criminal liability, particularly in relation to financial and corruption-related crimes. However, no significant progress has been made in this area.

  • Discussions over corporate criminal liability extension.
  • No significant progress in extending corporate criminal liability.

Money Laundering Offences and Penalties

Under Brazilian law, engaging in financial transactions to conceal the identity or source/destination of illegal goods or assets is considered money laundering, as long as those assets derive from a previous criminal offence.

  • Money laundering offences: concealing assets derived from criminal offences.
  • Penalties: imprisonment, fines, asset forfeiture, and prohibition from public roles.

Monetary Thresholds and Predicate Offences

There are no specific monetary thresholds for money laundering crimes from a criminal perspective but can be reported as suspicious transactions in the administrative sphere. Any criminal offence can serve as a predicate offence for money laundering.

  • No monetary thresholds for criminal money laundering prosecution.
  • Monetary suspicious transactions reported in the administrative sphere.
  • Any criminal offence can serve as a predicate offence.

Defence Arguments and Limitations

There are no codified defences to money laundering charges, but the Federal Constitution provides for an ample defence right. A conviction for money laundering has a limitation period of 16 years.

  • No codified defences to money laundering charges.
  • Federal Constitution provides for an ample defence right.
  • Limitations and the length of the limitation period.

Extraterritorial Reach and International Cooperation

Brazilian money laundering laws have extraterritorial reach, meaning they can apply when crimes are committed within Brazilian jurisdiction regardless of the perpetrator’s nationality and when assets deriving from a crime committed abroad are laundered within Brazil.

  • Extraterritorial reach of Brazilian money laundering laws.
  • International cooperation in relation to assets, values, or goods.

This information is accurate as of July 31, 2020.